Starbucks to start using Square for in-store payments next month

During a leadership conference in Houston, Starbucks executives said that the company will begin using Square Wallet for mobile payments starting in early November. At that time, customers will be able to use the Square directory to find more than 7,000 U.S. Starbucks stores.

The switch from Starbucks existing point-of-sale terminals to the Square reader will enable businesses to accept credit and debit purchases by swiping cards through Square's card reader, a small dongle that plugs into a smartphone or tablet audio jack. Starbucks also said it will allow digital tipping on its existing mobile payment applications and on the Square Wallet for its U.S. store partners by the summer of 2013.

Starbucks announced its intentions to switch to Square in August. The news was considered a turning point for Square because the deal extends the startup into so many new locations and brings its services to a customer base already embracing alternatives to conventional cash and plastic.

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